I am the Co-founder at Emerge Digital- a website development company based in Mumbai. We offer multiple services from website design to it’s marketing and branding. It is a common assumption that building websites is a very complex and an expensive task. That website development companies charge unreasonable fees.
Well, in this guide I will highlight certain criteria’s on what website design companies take into consideration while charging the client for their website requirements in 2021.
In a contemporary city like Mumbai, there are more than a thousand website development companies and freelancers habituating. While among them, selecting the right website development company that offers value and affordable services in Mumbai is a challenge.
In this guide, we have highlighted three main criterias on which website development companies in Mumbai charge their clients for the web design services they offer.
- Rate per Hour
- Flat Rate
- Perceived value
A web designer’s job has many perks attached to it. I am myself a web and graphics designer and you can’t imagine how it feels to be one’s own boss. According to the artistic vision that I possess, I seek employment and manage the project. But the best of all, perhaps, is that I decide the price for the value services that my company provides to my clients.
Pricing your services is not always easy, however, and here you may need to be concerned. When setting up a fee, the website companies first consider is their business expenses. This may include:
- Electricity consumption for continuous operations of computers,
- Charges incurred on buying premium software, tools, basic functional requirements, and other miscellaneous costs.
- Salary of employees.
- Others fix monthly costs.
The money that is needed to keep a company afloat and a pleasant lifestyle will decide how much to charge at a bare minimum for web design.
Among other things, being able to charge more depends on the company’s experience and the number of clients they have worked with.
Brand value, employees’ skill level, expertise, and the sector they are hunting are some other factors that a website development company considers while charging their clients.
You can presume, as web developer/designer, setting a rate is not a big deal. Simply choose a figure, right? But when it comes to setting a fair fee, both for the company and the clients, there’s more than what meets the eye.
Three forms that a website design company in Mumbai can charge clients for website development projects will be analyzed and clarified in this guide. This will help you understand the norms that website companies follow to set the correct price for their web services in 2021. To know more, continue reading.
Rate per hour
In this case, a web design company charges at a flat rate per each hour worked. A company else can develop a web design package level that allows them to bill different flat charges depending on the type of website and functionalities required.
While calculating fees, a web design firm considers two significant factors.
The first factor is whether the charge should remain adjustable or flat based on the specifics of the job. Different types of projects demand different types of skills, and subsequently, different hourly pay rates.
The other factor is whether the Mumbai web design company should charge clients for billable hours or base their pricing rate on each general project with a fixed estimate of hours needed. How you will decide depends on the style of work and customer base. Understanding your company’s workflow and having a good estimate of their employees’ abilities will help to determine how much to charge for web design.
When it comes to hourly rate calculation, we as a company begin by investigating the rates per hour of others in our industry. Good examples to look at are developer forums, design groups, job boards, and freelance sites.
It is important to look at other Mumbai website design and development companies doing comparable work to have a feel of the rates they use. Web designers with reasonable skills make up to about $75 per hour. While that’s a ballpark average, it is by no means the end of the story, some charge way less, and some charge wildly more.
Once we have worked on multiple projects and are outperforming in the market with our services, we revise our rates. While we see ourselves as competent as other established firms in our industry, we also look to set prices that creates a healthy market competition.
This might take a couple of years. There will definitely be a moment when you realize that you’re outgrowing that first ideal rate you set to begin with.
But what is the ideal way to acknowledge when it’s time to modify the rate? It all depends on the quality you can show through your portfolio and what you can generate and deliver. The quality of your services will determine how much to charge for a website, and that relies on you being able to show what you’re capable of.
Charging by the hour is ideal for new website development companies who have just begun. This is especially true for those who don’t yet understand or know how long individual projects are going to take them to complete. It also ensures that you get compensated for occasional scope creep. Scope creep is what happens when customers add more specifications to the project than was originally agreed upon.
One major concern is when the website development company underestimates the time/number of hours needed to finish the project. It may frustrate the client when you later request more money and time to complete the job. For this, the soundest option is to already quote the double of time required to complete the project than you already have estimated.
The difference between charging customers hourly and charging based on a flat, fixed price is the mindset.
Instead of stressing about the number of hours the company spends to build a website, the website development agency can both stay focused on the product’s ultimate value; the end result with a fixed cost attached. .
This is another good way to figure out how much to charge for web design. It lets the client know exactly how much they’re going to pay, and it lets you know exactly how much your company is going to earn and make profits.
We schedule exactly the amount of time each project takes to bill for each project/design. Underestimating the amount of time that takes to finish a project/job will only hurt our income.
A professional business website can cost between $5,000 and $10,000. This makes the average price of setting up, designing, building, and creating content for a website about $6,760. This number may also include customer training and maintenance. The website pricing for complex custom websites will, of course, be more expensive.
Pricing based on a per-project rate keeps the company’s hourly salary private. Sometimes this is useful for allaying customers who would complain about what they perceive to be high hourly rates.
Also, you’re not bound to the prospect’s expectations of what your time is worth. This means you can use more effective methods to design websites, keeping your company’s own costs low and profits high.
This is the third and last pricing method which entails estimating the amount of value you and your website agency deliver to your customer. This value-based pricing approach is dependent on your clients’ perception of value and the advantages of your service.
As a consequence, website companies can charge premium prices and this can attract higher-end customers. For instance, when your customer understands that by investing $ 1K in your company’s web development services, it will generate about $ 10K in revenue. This would gladly make them invest because they see the value in your offer. This will determine how much to charge for web design based on explicit deliverables.
The concept behind value-based pricing is to base your price point on the value you give to the customer. Sometimes, with previous case studies, you can demonstrate this value directly. The perceived value may be intangible on other occasions.
On what other basis does the website development company charge?
Valuation of services
Lastly, we come to our web development/design services valuation.
To help website development companies decide on their basic rates, ask yourself what types of websites your company can build. Each type may have a different value attached, depending on its complexity.
- Small to medium-sized business websites
- Small blogs
- Small to medium-sized electronic e-commerce shops
- Large e-commerce shops with brick and mortar presence
- Large physical and digital e-commerce shops
- Membership sites
It is hard to determine how much to charge for web design even when you know your capabilities well. A lot of website design companies tend to underestimate their value and charge lower than they should.
As a website development company, your job is far from being a web developer/designer alone. The website development company is also responsible for discovering opportunities and persuading people to become clients. This is the most important factor taken into the price of services offered.
Choose the correct strategy
As a company owner, there are many distinct pricing strategies you can use. The one you decide to go with depends on your experience, your preferences, and the market that you serve. You might even prefer to give various alternatives or tailor the pricing depending on each customer.
People will tend to judge you depending on the services your company can offer. This is usually better than going through a long-winded summary of your past work experience.
It is also essential to remember that a design will forever be an innovation/evolution of abilities. Thus, your pricing rates should reflect how up to date you are on the latest trends and technologies.
Experience is the best method to master your pitching and pricing strategy. But the above info will serve as the first step to knowing how much money would be ideal to charge for designing and developing website services.
Who is your target customer?
Thinking about your desired client, their specific needs, and how you can meet them is a good idea to come up with a fee system that works well for both parties. Listen to your customer’s feedback and modify your offers accordingly.
You don’t need to set your rates continuously; all you need to do is adjust your rates and offers as-needed to get the correct balance between pricing and expectations.
Spend some of your time developing your target client persona (a fundamental biography of your target client) as part of this method.
You’ve got the basics now: fundamental techniques and norms that a website development company uses to quote your website design expenses!
In conclusion, while there is no special magic formula, ideal road map, or method to set your website development prices, these fundamental guidelines should help you to understand how design rates are calculated based on the kind and complexity of work.
We provide all kinds of services from website design to branding and digital marketing.
Start your project now with Emerge Digital
Drop us your requirements at email@example.com